I hope to start investing with performing, first liens to continue learning and then eventually branch out into seconds and non-performing.  

I'm not sure how extensive the contract must be for your state.

Most of the guys I know who are using little to none of their own money have at least a ten year track record of solid performance.  

I had time on my side plus rentals with a very nice cashflow to pay for under performing properties .  

In regards to your concerns, you should put together an MOU regarding the terms of your agreement with performance clauses protecting both parties, and eventually lead to a JV agreement.There are several other methods to protect yourself as well as the owner/seller, however, too lengthy to write about.Don't be too greedy, otherwise it will limit your relationships and longevity. 

If you do not perform, they'll just move on.

Perhaps the question would be, based on the described circumstances, how do you convert a non performing asset such as this into a performing asset?

Second question: I travel extensively for my full time job.

In my opinion, CAP rates and NOI are a great way to compare properties to each other you're when doing business with other investors, but Cash on Cash is a great way to see how one property will perform for your personal operating assumptions, compared to the next.

The note was non-performing so the bank sold the note off likely at a good discount.